GDP growth is the most widely quoted indicator of economic performance, but it may not give an accurate picture of people's economic well-being, especially in the short run. The first two charts show the indices of both real GDP and household income, providing an indication on whether GDP growth translates into improvements in the economic well-being of households. In most OECD countries, GDP dropped sharply at the beginning of the economic crisis, but the impact on household income was less pronounced. An important reason for the difference was a sharp rise in governments' net cash transfers to households, which increased households' disposable income as a share of their primary income (their income earned from productive activity or from ownership of assets, net of any payments in liabilities, third chart.)

Household disposable income as a percentage of primary income, seasonally adjusted. Disposable income includes net cash transfers from governments where primary income does not. Households include non-profit institutions serving households, such as non-profit sports membership clubs, as these cannot be separately identified across all countries.